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Reversal arbitrage

A riskless 

Transaction

 consisting of the 

Short

 sale of a security, the 

Purchase

 of a call, and the writing of a put. If the value of the security increases, the 

Call

 is exercised to negate the 

Short

 sale. If the value of the security decreases, the 

Put

 will be exercised by the holder and the received security will negate the 

Short

 sale.



Related Terms: 11

Action

,

Call

,

ECU

,

Exercise

,

Inc.

,

Purchase

,

Put

,

Risk

,

SEC

,

Short

,

Transaction


Other Related Pages:

Category: Trading


Starting With: R


Semi Related Terms: 541  CLICK HERE TO VIEW

10-K

,

Accreted value

,

Accrual of discount

,

Agency security

,

Amortization of premium

,

Amortized value

,

Asset-backed security

,

At par

,

All or any part

,

At best

,

At call

,

All-risks coverage

,

At risk

,

Add-on service

,

Abstract of title

,

Action to quiet title

,

As is

,

Assignment to creditors

,

Attorney in fact

,

Assignment of mortgage

,

A shares

,

Aggregate exercise price

,

At the money

,

Automatic exercise

,

Across the board

,

Action

,

Additional paid-in capital

,

Assessed value

,

Against the box

,

At the bell

,

At the close

,

At the figure

,

At the full

,

At the market

,

At the opening order

,

Automated Pricing and Reporting System

,

Away from the market

,

Below the line

,

Books of final entry

,

Books of original entry

,

Book value per share

,

Banking Act of 1933

,

Bid-to-cover ratio

,

Book-entry security

,

Bureau of Public Debt

,

Brought over the wall

,

Buying on margin

,

Buy on close

,

Buy on opening

,

Buy the book

,

Balance of payments

,

Board of Governors

,

Breaking the syndicate

,

Bill of exchange

,

Bill of sale

,

Breach of trust

,

By the book

,

Breakup value

,

Benchmark risk

,

B shares

,

Buy and write

,

Breadth-of-market theory

,

Beat the gun

,

Cost Of Goods Sold

,

Cost of sales

,

Cabinet security

,

Call

,

Call date

,

Call price

,

Call protection

,

Call risk

,

Certificate of Participation

,

Committee on Uniform Securities Identification Procedures

,

Conversion value

,

Convertible security

,

Credit risk

,

Current market value

,

Call money rate

,

Code of procedure

,

Capitalization of income

,

Cost of Living Adjustment

,

Cost-of-living index

,

Council of Economic Advisers

,

Cash and carry trade

,

Chasing the market

,

Cheapest to deliver

,

Chicago Board of Trade

,

Commodities Exchange Act

,

Country risk

,

Cash surrender value

,

Cash value

,

Cash value life insurance policy

,

Cost-of-living rider

,

Certificate of stock

,

Corporate action

,

Cost of carry

,

Certificate of title

,

Class action suit

,

Contract sale

,

Cancellation of debt

,

Certificate of Claim

,

Cost of debt capital

,

Cost of funds

,

C shares

,

Call option

,

Call ratio backspread

,

Call swaption

,

Cashless exercise

,

Class of options

,

Close to the money

,

Closing transaction

,

Counterparty risk

,

Covered call

,

Covered put

,

Certificate of Occupancy

,

Cloud on title

,

Cash or Deferred Arrangement

,

Cash sale

,

Class A Shares

,

Class B Shares

,

Crash of 1929

,

Crash of 1987

,

Child and dependent care credit

,

Coefficient of determination

,

Cup and handle

,

Certificate of delivery

,

Close a position

,

Closing purchase

,

Cornering the market

,

Curbs in

,

Deposit in transit

,

Date of issue

,

Date of payment

,

Digested security

,

Droplock security

,

Division of Enforcement

,

Division of Investment Management

,

Division of Market Regulation

,

Date of record

,

Dividend in arrears

,

Desk (the)

,

Division of labor

,

Derivative security

,

De-escalation clause

,

De facto

,

Doing business as

,

Durable Power of Attorney

,

Date of maturity

,

Debtor in possession

,

Debtor-in-possession financing

,

Deed of Release

,

Deed of Trust

,

Default risk

,

Discharge of bankruptcy

,

Discharge of lien

,

Due-on-sale clause

,

Deep in the money

,

Deep out of the money

,

Deed of Surrender

,

Department of Housing and Urban Development

,

Distressed security

,

Diversifiable risk

,

Dogs of the Dow

,

Depth of market

,

Downside risk

,

Economic value

,

Eurodollar certificate of deposit

,

Equity risk premium

,

Escrowed to maturity

,

Event risk

,

Exchangeable security

,

Exempt security

,

Ex-legal

,

Either-or order

,

ECU

,

Edge Act

,

E-mini

,

Exchange of spot

,

Ex-pit transaction

,

Excluded risk

,

Employee Stock Purchase Plan

,

Ex-all

,

Early exercise

,

Exercise

,

Exercise assignment

,

Exercise limit

,

Exercise notice

,

Exercise ratio

,

Ex-warrants

,

Employee Retirement Income Security Act of 1974

,

Ex-rights

,

Ex-rights date

,

First In First Out

,

Federal Savings and Loan Association

,

First call date

,

Flight to quality

,

Flow of funds

,

Federal Call

,

Fill or kill

,

Front-ending an order

,

Forward P/E

,

Factors of production

,

Favorable balance of trade

,

Fair market value

,

Form 8-K

,

Form S-1

,

Floating security

,

Friends and family offering

,

Fair Credit Reporting Act

,

Fair Debt Collection Practices Act

,

Financial risk

,

Forward sale

,

Full faith and credit

,

Family of funds

,

Fund of funds

,

Free and clear

,

Federal Insurance Contributions Act

,

Free right of exchange

,

Fair value

,

Graduated security

,

Glass-Steagall Act

,

G-7

,

General Agreement on Tariffs and Trade

,

G-8

,

Group sale

,

Growth and income fund

,

Gather in the stops

,

Going short

,

Hart-Scott-Rodino Act of 1976

,

Hit the bid

,

House call

,

House of issue

,

Health Insurance Portability and Accountability Act

,

Holder in due course

,

Home equity line of credit

,

Home Mortgage Disclosure Act

,

Head and shoulders

,

Hammering the market

,

Held at the opening

,

Holding the market

,

Imputed value

,

In escrow

,

Inflation-indexed security

,

Interest rate risk

,

Intrinsic value

,

Investment security

,

Investment value

,

In-house

,

Investment Advisor Act of 1940

,

Investment Company Act of 1940

,

In line

,

Insider Trading sanctions Act of 1984

,

Internal Rate of Return

,

Indication of interest

,

Inc.

,

In intestacy

,

In play

,

In-process research and development

,

Income risk

,

I/O strip

,

In-service withdrawal

,

Idiosyncratic risk

,

Imbalance of orders

,

In and out

,

In sympathy

,

In the tank

,

Jointly and severally

,

Jumping the gun

,

Joint will

,

Joint and several liability

,

Joint and survivor annuity

,

Last In First Out

,

Liquidation value

,

Lender of last resort

,

Law of one price

,

Letter security

,

Limited risk

,

Lending at a rate

,

Limit-on-close order

,

Long Market Value

,

Law of demand

,

Law of supply

,

London International Financial Futures and Options Exchange

,

Letter of comment

,

Legal risk

,

Living will

,

Line of credit

,

Loan-to-cost

,

Loan-to-value

,

Loan value

,

Loan-value ratio

,

Lock-in

,

Lease-purchase agreement

,

Leading the market

,

Locked in

,

Long-term gain or loss

,

Last sale

,

Level I quotes

,

Marketable security

,

Maturity value

,

Mortgage-backed security

,

Mortgage pass-through security

,

Maintenance call

,

Make a market

,

Margin call

,

Market if touched order

,

Market on close order

,

Mark-to-market

,

Medium of exchange

,

Marginal propensity to consume

,

Money at call

,

Mortgage risk

,

Married put

,

Market-value weighted index

,

Net book value

,

Negotiable certificate of deposit

,

Negotiable Order of Withdrawal

,

Negotiable security

,

Notice of Sale

,

National Association of Securities Dealers

,

National Association of Securities Dealers Automated Quotations system

,

Net Asset Value

,

No-Action Letter

,

Null and void

,

Notice of Default

,

Naked call

,

Naked put

,

National Association of Real Estate Investment Trusts

,

Nominal value

,

Net transaction

,

Off the books

,

Office of Thrift Supervision

,

Out-of-favor

,

Over-the-Counter

,

On-floor order

,

On margin

,

Or better

,

Opinion of title

,

On account

,

On-the-spot loan

,

Opening transaction

,

Option holder

,

Out of the money

,

Old age, survivors, and disability insurance

,

On-balance volume

,

On close

,

On open

,

On the opening

,

Pooling of interests

,

Profit and loss statement

,

Payment-in-kind security

,

Premium over bond value

,

Premium over conversion value

,

Price Value of a Basis Point

,

Provisional call feature

,

Purchase

,

Put bond

,

Put provision

,

P&L

,

Pour-over will

,

Power of Attorney

,

Preforeclosure sale

,

Prepayment risk

,

Principal risk

,

Prioritization of debt

,

Purchase-money mortgage

,

Private Market Value

,

Protective put

,

Protective put buying

,

Put

,

Put option

,

Put swaption

,

Put warrant

,

Purchase agreement

,

Prudent Expert Act

,

Paid-in capital

,

Paid-in surplus

,

Percent held by institutions

,

Private Investment in Public Equity

,

Preservation of capital

,

Put ratio backspread

,

Point-and-figure chart

,

Painting the tape

,

Put/call ratio

,

Replacement value

,

Reports and Records

,

Residual value

,

Return of capital

,

Return on Capital

,

Return on Invested Capital

,

Return on Total Assets

,

Risk adjusted return

,

Registered security

,

Residual security

,

Restricted security

,

Risk

,

Reading the tape

,

Receive against payment

,

Receive versus payment

,

Regulation D

,

Regulation G

,

Regulation T

,

Regulation U

,

Round of funding

,

Rules of Fair Practice

,

Rate of exchange

,

Reciprocal of European terms

,

Reinvestment risk

,

Regulation A

,

Right of first refusal

,

Right of rescission

,

Right to Know

,

Revolving line of credit

,

Right of recourse

,

Rule of 78

,

Right of redemption

,

Retirement Equity Act of 1984

,

Risk/return trade-off

,

Risk arbitrage

,

Risk-averse

,

Riskless arbitrage

,

Risk management

,

Risk neutral

,

Risk premium

,

Risk seeking

,

Return on Capital Employed

,

Rate of return

,

Real rate of return

,

Risk capital

,

Salvage value

,

SEC filing

,

Selling, General and Administrative Expenses

,

SG&A

,

Savings and Loan

,

Short-term reserves

,

Sight letter of credit

,

S&L

,

SEC

,

Securities and Exchange Commission

,

Short bond

,

Short-term

,

Stamped security

,

Straight value

,

SEC fee

,

Segregation of securities

,

Sell the book

,

Standard of living

,

Systemic risk

,

Short hedge

,

Second-to-die insurance

,

Surrender value

,

Short interest

,

Short interest ratio

,

Statute of Limitations

,

Sale and leaseback

,

Satisfaction of debt

,

Security interest

,

Security loan

,

Senior security

,

Staggered board of directors

,

Selling the spread

,

Short leg

,

Short market value

,

Short straddle

,

Synthetic put

,

Social Security

,

Social Security Tax

,

Shareholder value

,

Security analysis

,

Selling short

,

Selling short against the box

,

Short

,

Short cover

,

Shorting against the box

,

Short position

,

Short purchase

,

Short sale rule

,

Short squeeze

,

S Corporation

,

Short-term gain or loss

,

Subchapter S Corporation

,

Schedule C

,

Securities Act of 1933

,

Securities Acts Amendments of 1975

,

Securities Exchange Act of 1934

,

Seek a market

,

Short swing profits

,

Short swing rules

,

S&P phenomenon

,

Stop and reverse

,

Transaction

,

T-Bill

,

Term to maturity

,

Treasury Inflation-Protected Security

,

Trust-preferred security

,

Take a position

,

Trailing P/E

,

Tenancy by the entirety

,

Truth in Lending

,

Theoretical value

,

Tenancy at will

,

The Street

,

Timing the market

,

Taxpayer Relief Act of 1997

,

Tax Reform Act of 1986

,

Tax Reform Act of 1993

,

Tax sale

,

Take a bath

,

U.S. Government Agency Security

,

U.S. Savings Bond

,

U.S. Treasury

,

U.S. Treasury Bill

,

U.S. Treasury Bond

,

U.S. Treasury Note

,

U.S. Treasury Securities

,

Unlimited risk

,

Uniform Securities Act

,

Underlying security

,

Uncovered call

,

Uncovered put

,

Unsystematic risk

,

Unit of trade

,

Unit of trading

,

Value stock

,

Value averaging

,

Value investing

,

Value Added Tax

,

Written-down value

,

Williams Act

,

Waiver of premium

,

Widow-and-orphan stock

,

W-2 Form

,

Wash sale rule

,

W formation

,

When, as, and if issued

,

X or XD

,

Year-To-Date

,

Yield to call

,

Yield to maturity

,

Yield to worst

,

Y shares


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